1、Table of ContentsUNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-Q(Markone)QUARTERLYREPORTPURSUANTTOSECTION13OR15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended June30,2023ORTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE

2、 ACT OF 1934For the transition period from to Commission file number:1-8606Verizon Communications Inc.(Exact name of registrant as specified in its charter)Delaware23-2259884(State or other jurisdictionof incorporation or organization)(I.R.S.Employer Identification No.)1095 Avenue of the Americas100

3、36New York,New York(Address of principal executive offices)(Zip Code)Registrants telephone number,including area code:(212)395-1000Securities registered pursuant to Section 12(b)of the Act:Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which RegisteredCommon Stock,par value$0.10VZNew Y

4、ork Stock ExchangeCommon Stock,par value$0.10VZThe Nasdaq Global Select Market1.625%Notes due 2024VZ 24BNew York Stock Exchange4.073%Notes due 2024VZ 24CNew York Stock Exchange0.875%Notes due 2025VZ 25New York Stock Exchange3.25%Notes due 2026VZ 26New York Stock Exchange1.375%Notes due 2026VZ 26BNew

5、 York Stock Exchange0.875%Notes due 2027VZ 27ENew York Stock Exchange1.375%Notes due 2028VZ 28New York Stock Exchange1.125%Notes due 2028VZ 28ANew York Stock Exchange2.350%Fixed Rate Notes due 2028VZ 28CNew York Stock Exchange1.875%Notes due 2029VZ 29BNew York Stock Exchange0.375%Notes due 2029VZ 29

6、DNew York Stock Exchange1.250%Notes due 2030VZ 30New York Stock Exchange1.875%Notes due 2030VZ 30ANew York Stock Exchange4.250%Notes due 2030VZ 30DNew York Stock Exchange2.625%Notes due 2031VZ 31New York Stock Exchange2.500%Notes due 2031VZ 31ANew York Stock Exchange3.000%Fixed Rate Notes due 2031VZ

7、 31DNew York Stock Exchange0.875%Notes due 2032VZ 32New York Stock Exchange0.750%Notes due 2032VZ 32ANew York Stock Exchange1.300%Notes due 2033VZ 33BNew York Stock ExchangeTable of ContentsSecurities registered pursuant to Section 12(b)of the Act(continued):Title of Each ClassTrading Symbol(s)Name

8、of Each Exchange on Which Registered4.75%Notes due 2034VZ 34New York Stock Exchange4.750%Notes due 2034VZ 34CNew York Stock Exchange3.125%Notes due 2035VZ 35New York Stock Exchange1.125%Notes due 2035VZ 35ANew York Stock Exchange3.375%Notes due 2036VZ 36ANew York Stock Exchange2.875%Notes due 2038VZ

9、 38BNew York Stock Exchange1.875%Notes due 2038VZ 38CNew York Stock Exchange1.500%Notes due 2039VZ 39CNew York Stock Exchange3.50%Fixed Rate Notes due 2039VZ 39DNew York Stock Exchange1.850%Notes due 2040VZ 40New York Stock Exchange3.850%Fixed Rate Notes due 2041VZ 41CNew York Stock ExchangeIndicate

10、 by check mark whether the registrant(1)has filed all reports required to be filed by Section13 or 15(d)of the Securities Exchange Act of 1934during the preceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been subject to such filingrequirem

11、ents for the past 90days.YesNoIndicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 ofRegulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registrant wa

12、s required to submit suchfiles).YesNoIndicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or anemerging growth company.See the definitions of large accelerated filer,accelerated filer,smaller reporting com

13、pany,and emerging growth companyin Rule 12b-2 of the Exchange Act.Large accelerated filerAcceleratedfilerNon-acceleratedfilerSmallerreportingcompanyEmerginggrowthcompanyIf an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for co

14、mplying with any new orrevised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act).YesNoAt June30,2023,4,204,039,985 shares of the registrants common stock

15、were outstanding,after deducting 87,393,661 shares held in treasury.Table of ContentsTABLE OF CONTENTSItem No.PagePART I-FINANCIAL INFORMATIONItem1.Financial Statements(Unaudited)Condensed Consolidated Statements of Income4Three and six months ended June 30,2023 and 2022Condensed Consolidated Statem

16、ents of Comprehensive Income5Three and six months ended June 30,2023 and 2022Condensed Consolidated Balance Sheets6At June 30,2023 and December 31,2022Condensed Consolidated Statements of Cash Flows7Six months ended June 30,2023 and 2022Notes to Condensed Consolidated Financial Statements8Item2.Mana

17、gements Discussion and Analysis of Financial Condition and Results of Operations31Item3.Quantitative and Qualitative Disclosures About Market Risk54Item4.Controls and Procedures55PART II-OTHER INFORMATIONItem1.Legal Proceedings55Item1A.Risk Factors55Item2.Unregistered Sales of Equity Securities and

18、Use of Proceeds55Item6.Exhibits56Signature57CertificationsTable of ContentsPart I-Financial InformationItem1.Financial Statements(Unaudited)Condensed Consolidated Statements of IncomeVerizon Communications Inc.and SubsidiariesThree Months EndedSix Months EndedJune 30,June 30,(dollars in millions,exc

19、ept per share amounts)(unaudited)2023202220232022Operating RevenuesService revenues and other$27,319$27,115$54,471$54,333Wireless equipment revenues5,2776,67411,03713,010Total Operating Revenues32,59633,78965,50867,343Operating ExpensesCost of services(exclusive of items shown below)6,9866,93214,064

20、14,159Cost of wireless equipment5,7787,48812,20414,611Selling,general and administrative expense8,2537,49615,75914,668Depreciation and amortization expense4,3594,3218,6778,557Total Operating Expenses25,37626,23750,70451,995Operating Income7,2207,55214,80415,348Equity in earnings(losses)of unconsolid

21、ated businesses(33)41(24)38Other income(expense),net21049324(875)Interest expense(1,285)(785)(2,492)(1,571)Income Before Provision For Income Taxes6,1126,85712,61212,940Provision for income taxes(1,346)(1,542)(2,828)(2,914)Net Income$4,766$5,315$9,784$10,026Net income attributable to noncontrolling

22、interests$118$116$227$247Net income attributable to Verizon4,6485,1999,5579,779Net Income$4,766$5,315$9,784$10,026Basic Earnings Per Common ShareNet income attributable to Verizon$1.10$1.24$2.27$2.33Weighted-average shares outstanding(in millions)4,2084,2014,2074,201Diluted Earnings Per Common Share

23、Net income attributable to Verizon$1.10$1.24$2.27$2.33Weighted-average shares outstanding(in millions)4,2134,2024,2124,202See Notes to Condensed Consolidated Financial Statements4Table of ContentsCondensed Consolidated Statements of Comprehensive IncomeVerizon Communications Inc.and SubsidiariesThre

24、e Months EndedSix Months EndedJune 30,June 30,(dollars in millions)(unaudited)2023202220232022Net Income$4,766$5,315$9,784$10,026Other Comprehensive Income(Loss),Net of Tax(Expense)BenefitForeign currency translation adjustments,net of tax of$1,$(11),$4 and$(17)(6)(136)20(165)Unrealized gain on cash

25、 flow hedges,net of tax of$(8),$(19),$(15)and$(91)257246279Unrealized gain(loss)on fair value hedges,net of tax of$(100),$88,$3 and$88293(272)(9)(272)Unrealized gain(loss)on marketable securities,net of tax of$0,$2,$(1)and$7(2)(6)2(24)Defined benefit pension and postretirement plans,net of tax of$21

26、,$24,$36 and$72(54)(72)(115)(211)Other comprehensive income(loss)attributable to Verizon256(414)(56)(393)Total Comprehensive Income$5,022$4,901$9,728$9,633Comprehensive income attributable to noncontrolling interests$118$116$227$247Comprehensive income attributable to Verizon4,9044,7859,5019,386Tota

27、l Comprehensive Income$5,022$4,901$9,728$9,633See Notes to Condensed Consolidated Financial Statements5Table of ContentsCondensed Consolidated Balance SheetsVerizon Communications Inc.and SubsidiariesAt June 30,At December 31,(dollars in millions,except per share amounts)(unaudited)20232022AssetsCur

28、rent assetsCash and cash equivalents$4,803$2,605Accounts receivable24,10825,332Less Allowance for credit losses922826Accounts receivable,net23,18624,506Inventories1,8962,388Prepaid expenses and other7,5038,358Total current assets37,38837,857Property,plant and equipment313,424307,689Less Accumulated

29、depreciation206,154200,255Property,plant and equipment,net107,270107,434Investments in unconsolidated businesses1,0151,071Wireless licenses151,337149,796Goodwill28,64728,671Other intangible assets,net11,09711,461Operating lease right-of-use assets25,34526,130Other assets17,85617,260Total assets$379,

30、955$379,680Liabilities and EquityCurrent liabilitiesDebt maturing within one year$14,827$9,963Accounts payable and accrued liabilities20,06723,977Current operating lease liabilities4,2114,134Other current liabilities12,29912,097Total current liabilities51,40450,171Long-term debt137,871140,676Employe

31、e benefit obligations12,35712,974Deferred income taxes44,05543,441Non-current operating lease liabilities20,74521,558Other liabilities17,02118,397Total long-term liabilities232,049237,046Commitments and Contingencies(Note12)EquitySeries preferred stock($0.10 par value;250,000,000 shares authorized;n

32、one issued)Common stock($0.10 par value;6,250,000,000 shares authorized in each period;4,291,433,646 sharesissued in each period)429429Additional paid in capital13,52313,420Retained earnings86,44882,380Accumulated other comprehensive loss(1,921)(1,865)Common stock in treasury,at cost(87,393,661 and

33、91,572,258 shares outstanding)(3,830)(4,013)Deferred compensation employee stock ownership plans(ESOPs)and other544793Noncontrolling interests1,3091,319Total equity96,50292,463Total liabilities and equity$379,955$379,680See Notes to Condensed Consolidated Financial Statements6Table of ContentsConden

34、sed Consolidated Statements of Cash FlowsVerizon Communications Inc.and SubsidiariesSix Months EndedJune 30,(dollars in millions)(unaudited)20232022Cash Flows from Operating ActivitiesNet Income$9,784$10,026Adjustments to reconcile net income to net cash provided by operating activities:Depreciation

35、 and amortization expense8,6778,557Employee retirement benefits108(121)Deferred income taxes6331,514Provision for expected credit losses1,061665Equity in losses(earnings)of unconsolidated businesses,net of dividends received49(18)Changes in current assets and liabilities,net of effects from acquisit

36、ion/disposition of businesses(620)(1,959)Other,net(1,672)(999)Net cash provided by operating activities18,02017,665Cash Flows from Investing ActivitiesCapital expenditures(including capitalized software)(10,070)(10,491)Cash received related to acquisitions of businesses,net247Acquisitions of wireles

37、s licenses(1,085)(2,275)Collateral receipts(payments)related to derivative contracts,net824(2,075)Other,net131(62)Net cash used in investing activities(10,200)(14,656)Cash Flows from Financing ActivitiesProceeds from long-term borrowings1,5033,617Proceeds from asset-backed long-term borrowings3,7055

38、,053Net proceeds from(repayments of)short-term commercial paper(167)2,560Repayments of long-term borrowings and finance lease obligations(2,600)(7,405)Repayments of asset-backed long-term borrowings(2,383)(2,695)Dividends paid(5,487)(5,378)Other,net(157)411Net cash used in financing activities(5,586

39、)(3,837)Increase(decrease)in cash,cash equivalents and restricted cash2,234(828)Cash,cash equivalents and restricted cash,beginning of period4,1114,161Cash,cash equivalents and restricted cash,end of period(Note1)$6,345$3,333See Notes to Condensed Consolidated Financial Statements7Table of ContentsN

40、otes to Condensed Consolidated Financial Statements(Unaudited)Verizon Communications Inc.and SubsidiariesNote1.Basis of PresentationVerizon Communications Inc.(the Company)is a holding company that,acting through its subsidiaries(together with the Company,collectively,Verizon),isone of the worlds le

41、ading providers of communications,technology,information and entertainment products and services to consumers,businesses andgovernment entities.With a presence around the world,we offer data,video and voice services and solutions on our networks and platforms that aredesigned to meet customers deman

42、d for mobility,reliable network connectivity,security and control.The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accountingprinciples(GAAP)in the United States(U.S.)and based upon Securities and Exchange Commission rule

43、s that permit reduced disclosure for interim periods.For a more complete discussion of significant accounting policies and certain other information,you should refer to the financial statements included in theCompanys Annual Report on Form 10-K for the year ended December31,2022.These financial stat

44、ements reflect all adjustments that are necessary for afair presentation of results of operations and financial condition for the interim periods shown,including normal recurring accruals and other items.Theresults for the interim periods are not necessarily indicative of results for the full year.D

45、uring the first quarter of 2023,Verizon reorganized the customer groups within its Business segment.See Note 10 for additional information.Certain amounts have been reclassified to conform to the current periods presentation.Earnings Per Common ShareThere were a total of approximately 5.6 million an

46、d 4.6 million outstanding dilutive securities,primarily consisting of performance stock units and restrictedstock units,included in the computation of diluted earnings per common share for the three and six months ended June30,2023,respectively.There were atotal of approximately 1.4 million and 1.5

47、million outstanding dilutive securities,primarily consisting of restricted stock units,included in the computation ofdiluted earnings per common share for the three and six months ended June30,2022,respectively.Cash,Cash Equivalents and Restricted CashWe consider all highly liquid investments with a

48、n original maturity of 90 days or less when purchased to be cash equivalents.Cash equivalents are stated atcost,which approximates quoted market value and includes amounts held in money market funds.Cash collections on the receivables collateralizing our asset-backed debt securities are required at

49、certain specified times to be placed into segregatedaccounts.Deposits to the segregated accounts are considered restricted cash and are included in Prepaid expenses and other and Other assets in ourcondensed consolidated balance sheets.Cash,cash equivalents and restricted cash are included in the fo

50、llowing line items in the condensed consolidated balance sheets:At June 30,At December 31,Increase/(Decrease)(dollars in millions)20232022Cash and cash equivalents$4,803$2,605$2,198Restricted cash:Prepaid expenses and other1,3871,34344Other assets155163(8)Cash,cash equivalents and restricted cash$6,

51、345$4,111$2,234Note2.Revenues and Contract CostsWe earn revenue from contracts with customers,primarily through the provision of telecommunications and other services and through the sale of wirelessequipment.Revenue by CategoryWe have two reportable segments that we operate and manage as strategic

52、business units,Consumer and Business.Revenue is disaggregated by productsand services within Consumer,and customer groups(Enterprise and Public Sector,Business Markets and Other,and Wholesale)within Business.SeeNote10 for additional information on revenue by segment,including Corporate and other.We

53、also earn revenues that are not accounted for under Accounting Standards Update(ASU)2014-09,Revenue from Contracts with Customers(Topic606)from leasing arrangements(such as those for towers and equipment),captive reinsurance8Table of Contentsarrangements primarily related to wireless device insuranc

54、e and the interest when equipment is sold to the customer by an authorized agent under a devicepayment plan agreement.As allowed bythe practical expedient withinASU 2016-02,Leases(Topic 842),we have elected tocombinethe lease and non-lease componentsfor those arrangements of customer premise equipme

55、nt where we are the lessorascomponents accounted for under Topic 606.Duringthe three and six months ended June30,2023,revenues from arrangements that were not accounted for under Topic 606 were approximately$754millionand$1.5 billion,respectively.During the three and six months ended June30,2022,rev

56、enues from arrangements that were not accounted for under Topic606 were approximately$775 million and$1.6 billion,respectively.Remaining Performance ObligationsWhen allocating the total contract transaction price to identified performance obligations,a portion of the total transaction price may rela

57、te to serviceperformance obligations which were not satisfied or are partially satisfied as of the end of the reporting period.Below we disclose information relating tothese unsatisfied performance obligations.We apply the practical expedient available under Topic 606 that provides the option to exc

58、lude the expectedrevenues arising from unsatisfied performance obligations related to contracts that have an original expected duration of one year or less.This situationprimarily arises with respect to certain month-to-month service contracts.At June30,2023,month-to-month service contracts represen

59、ted approximately94%of our wireless postpaid contracts and approximately 94%of our wireline Consumer and Business Markets and Other contracts,compared to June30,2022,for which month-to-month service contracts represented approximately 94%of our wireless postpaid contracts and 89%of our wireline Cons

60、umer andour Business Markets and Other contracts.Additionally,certain contracts provide customers the option to purchase additional services.The fees related to these additional services are recognizedwhen the customer exercises the option(typically on a month-to-month basis).Contracts for wireless

61、services,with or without promotional credits that require maintenance of service,are generally either month-to-month and cancellableat any time,or considered to contain terms ranging from greater than one month to up to thirty-six months(typically under a device payment plan),or containterms ranging

62、 from greater than one month to up to twenty-four months(typically under a fixed-term plan).Additionally,customers may incur charges basedon usage or additional optional services purchased in conjunction with entering into a contract that can be cancelled at any time and therefore are notincluded in

63、 the transaction price.The transaction price allocated to service performance obligations,which are not satisfied or are partially satisfied as of theend of the reporting period,are generally related to contracts that are not accounted for as month-to-month contracts.Our Consumer group customers als

64、o include traditional wholesale resellers that purchase and resell wireless service under their own brands to theirrespective customers.Reseller arrangements generally include a stated contract term,which typically extends longer than two years and,in some cases,include a periodic minimum revenue co

65、mmitment over the contract term for which revenues will be recognized in future periods.Consumer customer contracts for wireline services are generally month-to-month;however,they may have a service term of two years or shorter than twelvemonths.Certain contracts with Business customers for wireline

66、 services extend into future periods,contain fixed monthly fees and usage-based fees,andcan include annual commitments in each year of the contract or commitments over the entire specified contract term;however,a significant number ofcontracts for wireline services with our Business customers have a

67、 contract term that is twelve months or less.Additionally,there are certain contracts with Business customers for wireline services that have a contractual minimum fee over the total contract term.Wecannot predict the time period when revenue will be recognized related to those contracts;thus,they a

68、re excluded from the time bands below.Thesecontracts have varying terms spanning over approximately sixteen years ending in February 2039 and have aggregate contract minimum payments totaling$1.4 billion.At June30,2023,the transaction price related to unsatisfied performance obligations that are exp

69、ected to be recognized for the remainder of 2023,2024and thereafter was$12.4billion,$19.6billion and$14.8billion,respectively.Remaining performance obligation estimates are subject to change and areaffected by several factors,including terminations and changes in the timing and scope of contracts,ar

70、ising from contract modifications.Accounts Receivable and Contract BalancesThe timing of revenue recognition may differ from the time of billing to our customers.Receivables presented in our condensed consolidated balance sheetsrepresent an unconditional right to consideration.Contract balances repr

71、esent amounts from an arrangement when either Verizon has performed,bytransferring goods or services to the customer in advance of receiving all or partial consideration for such goods and services from the customer,or thecustomer has made payment to Verizon in advance of obtaining control of the go

72、ods and/or services promised to the customer in the contract.Contract assets primarily relate to our rights to consideration for goods or services provided to customers but for which we do not have an unconditional rightat the reporting date.Under a fixed-term plan,total contract revenue is allocate

73、d between wireless service and equipment revenues.In conjunction withthese arrangements,a contract asset is created,which represents the difference between the amount of equipment revenue recognized upon sale and theamount of consideration received from the customer when the performance obligation r

74、elated to the transfer of control of the equipment is satisfied.Thecontract asset is9Table of Contentsreclassified to accounts receivable as wireless services are provided and billed.We have the right to bill the customer as service is provided over time,whichresults in our right to the payment bein

75、g unconditional.The contract asset balances are presented in our condensed consolidated balance sheets as Prepaidexpenses and other and Other assets.We recognize the allowance for credit losses at inception and reassess quarterly based on managementsexpectation of the assets collectability.Contract

76、liabilities arise when we bill our customers and receive consideration in advance of providing the goods or services promised in the contract.Wetypically bill service one month in advance,which is the primary component of the contract liability balance.Contract liabilities are recognized as revenuew

77、hen services are provided to the customer.The contract liability balances are presented in our condensed consolidated balance sheets as Other currentliabilities and Other liabilities.The following table presents information about receivables from contracts with customers:At June 30,At January 1,At J

78、une 30,At January 1,(dollarsinmillions)2023202320222022Receivables$10,573$11,274$10,620$10,758Device payment plan agreement receivables16,87816,64814,43912,888Balances do not include receivables related to the following contracts:leasing arrangements(such as those for towers and equipment),captivere

79、insurance arrangements primarily related to wireless device insurance and the interest when equipment is sold to the customer by an authorized agentunder a device payment plan agreement.Included in device payment plan agreement receivables presented in Note6.Receivables derived from the sale of equi

80、pment on a device payment planthrough an authorized agent are excluded.The following table presents information about contract balances:At June 30,At January 1,At June 30,At January 1,(dollars in millions)2023202320222022Contract asset$774$863$880$934Contract liability8,4688,2347,7067,229Revenue rec

81、ognized related to contract liabilities existing at January 1,2023 were$258 million and$4.6 billion for the three and six months endedJune30,2023,respectively.Revenue recognized related to contract liabilities existing at January 1,2022 were$365 million and$4.7 billion for the threeand six months en

82、ded June30,2022,respectively.The balances of contract assets and contract liabilities recorded in our condensed consolidated balance sheets were as follows:At June 30,At December 31,(dollarsinmillions)20232022AssetsPrepaid expenses and other$542$656Other assets232207Total$774$863LiabilitiesOther cur

83、rent liabilities$6,699$6,583Other liabilities1,7691,651Total$8,468$8,234Contract CostsTopic 606 requires the recognition of an asset for incremental costs to obtain a customer contract,which are then amortized to expense over the respectiveperiods of expected benefit.We recognize an asset for increm

84、ental commission expenses paid to internal and external sales personnel and agents inconjunction with obtaining customer contracts.We only defer these costs when we have determined the commissions are incremental costs that would nothave been incurred absent the customer contract and are expected to

85、 be recoverable.Costs to obtain a contract are amortized and recorded ratably ascommission expense over the period representing the transfer of goods or services to which the assets relate.Costs to obtain wireless contracts areamortized over both of our Consumer and Business customers estimated upgr

86、ade cycles,as such costs are typically incurred each time a customerupgrades.Costs to obtain wireline contracts are amortized as expense over the estimated customer relationship period for our Consumer customers.Incremental costs to obtain wireline contracts for our Business customers are insignific

87、ant.Costs to obtain contracts are recorded in Selling,general andadministrative expense.We also defer costs incurred to fulfill contracts that:(1)relate directly to the contract;(2)are expected to generate resources that will be used to satisfy ourperformance obligation under the contract;and(3)are

88、expected to be recovered through revenue generated under the contract.Contract fulfillment costsare expensed as we satisfy our performance obligations and recorded in Cost of services.These costs principally relate to direct costs that enhance ourwireline business resources,such as costs incurred to

89、 install circuits.(1)(2)(1)(2)(1)(1)10Table of ContentsWe determine the amortization periods for our costs incurred to obtain or fulfill a customer contract at a portfolio level due to the similarities within thesecustomer contract portfolios.Other costs,such as general costs or costs related to pas

90、t performance obligations,are expensed as incurred.Collectively,costs to obtain a contract and costs to fulfill a contract are referred to as deferred contract costs,and amortized over a one-to-seven year period.Deferred contract costs are classified as current or non-current within Prepaid expenses

91、 and other and Other assets,respectively.The balances of deferred contract costs included in our condensed consolidated balance sheets were as follows:At June 30,At December 31,(dollarsinmillions)20232022AssetsPrepaid expenses and other$2,629$2,629Other assets2,4362,475Total$5,065$5,104For the three

92、 and six months ended June30,2023,we recognized expense of$791 million and$1.6 billion,respectively,associated with the amortization ofdeferred contract costs,primarily within Selling,general and administrative expense in our condensed consolidated statements of income.For the three andsix months en

93、ded June30,2022,we recognized expense of$735million and$1.5 billion,respectively,associated with the amortization of deferred contractcosts,primarily within Selling,general and administrative expense in our condensed consolidated statements of income.We assess our deferred contract costs for impairm

94、ent on a quarterly basis.We recognize an impairment charge to the extent the carrying amount of adeferred cost exceeds the remaining amount of consideration we expect to receive in exchange for the goods and services related to the cost,less theexpected costs related directly to providing those good

95、s and services that have not yet been recognized as expenses.There have been no impairmentcharges recognized for the three and six months ended June30,2023 or June30,2022.Note3.Acquisitions and DivestituresSpectrum License TransactionsIn February 2021,the Federal Communications Commission(FCC)conclu

96、ded Auction 107 for C-Band wireless spectrum.In accordance with the rulesapplicable to the auction,Verizon is required to make payments for our allocable share of clearing costs incurred by,and incentive payments due to,theincumbent license holders associated with the auction,which are estimated to

97、be$7.6billion.During the six months ended June30,2023 and June30,2022,we made payments of$114million and$1.4billion,respectively,for obligations related to clearing costs and accelerated clearing incentives.In June2023,we incurred costs of approximately$365million for obligations related to accelera

98、ted clearing incentives,which were accrued for as of June30,2023.The majority of the remaining obligations related to clearing costs and incentive payments of approximately$4.2billion,which is inclusive of the$365million,are expected to be due by the end of the year.We expect to continue to make pay

99、ments of approximately$4.6billion for these obligations through 2024.These payments are dependent on the incumbent license holders accelerated clearing of the spectrum for Verizons use and,therefore,the final timing andamounts could differ based on the incumbent holders execution of their clearing p

100、rocess.In accordance with the FCC order,the clearing must be completedby December 2025.The carrying value of the wireless spectrum won in Auction 107 consists of all payments required to participate and purchase licenses inthe auction,including Verizons allocable share of clearing costs incurred by,

101、and incentive payments due to,the incumbent license holders associated withthe auction that we are obligated to pay in order to acquire the licenses,as well as capitalized interest to the extent qualifying activities have occurred.TracFone Wireless,Inc.On November 23,2021(the Acquisition Date),we co

102、mpleted the acquisition of TracFone Wireless,Inc.(TracFone),a provider of prepaid and value mobileservices in the U.S.Verizon acquired all of TracFones outstanding stock in exchange for approximately$3.5billion in cash,net of cash acquired andworking capital and other adjustments,57,596,544 shares o

103、f Verizon common stock valued at approximately$3.0billion,and up to an additional$650millionin future cash contingent consideration related to the achievement of certain performance measures and other commercial arrangements.The fair value ofthe Verizon common stock was determined on the basis of it

104、s closing market price on the Acquisition Date.The estimated fair value of the contingentconsideration as of the Acquisition Date was approximately$560 million and represents a Level 3 measurement as defined in ASC 820,Fair ValueMeasurements and Disclosures.See Note7 for additional information.The c

105、ontingent consideration payable is based on the achievement of certain revenueand operational targets,measured over a two-year earn out period.During the six months ended June 30,2023,Verizon made a payment of$102millionrelated to the contingent consideration,which is reflected in Cash flows from fi

106、nancing activities in our condensed consolidated statements of cash flows.Contingent consideration payments are expected to continue through 2024.11Table of ContentsDuring the six months ended June30,2022,Verizon received net cash proceeds of$248million for the final settlement of working capital,wh

107、ich wasincluded in our consideration as of the Acquisition Date.Note4.Wireless Licenses,Goodwill,and Other Intangible AssetsWireless LicensesThe carrying amounts of our Wireless licenses are as follows:At June 30,At December 31,(dollarsinmillions)20232022Wireless licenses$151,337$149,796At June30,20

108、23 and 2022,approximately$38.4 billion and$49.1 billion,respectively,of wireless licenses were under development for commercial servicefor which we were capitalizing interest costs.We recorded approximately$905 million and$880 million of capitalized interest on wireless licenses for the sixmonths en

109、ded June30,2023 and 2022,respectively.During the six months ended June30,2023,we renewed various wireless licenses in accordance with FCC regulations.The average renewal period forthese licenses was 11 years.GoodwillChanges in the carrying amount of Goodwill are as follows:(dollars in millions)Consu

110、merBusinessOtherTotalBalance at January 1,2023$21,142$7,502$27$28,671Reclassifications,adjustments and other 3(27)(24)Balance at June30,2023$21,142$7,505$28,647 Includes goodwill impairment charges of$27 million,related to non-strategic businesses presented within Other,recorded in Selling,general a

111、ndadministrative expense in our condensed consolidated statements of income for the three and six months ended June30,2023.Other Intangible AssetsThe following table displays the composition of Other intangible assets,net as well as the respective amortization periods:At June 30,2023At December 31,2

112、022(dollars in millions)GrossAmountAccumulatedAmortizationNetAmountGrossAmountAccumulatedAmortizationNetAmountCustomer lists(5 to 13 years)$4,335$(1,907)$2,428$4,335$(1,646)$2,689Non-network internal-use software(7years)24,247(17,210)7,03723,421(16,397)7,024Other(4 to 25 years)2,839(1,207)1,6322,806

113、(1,058)1,748Total$31,421$(20,324)$11,097$30,562$(19,101)$11,461The amortization expense for Other intangible assets was as follows:Three Months EndedSix Months Ended(dollars in millions)June 30,June 30,2023$653$1,30020226511,286The estimated future amortization expense for Other intangible assets fo

114、r the remainder of the current year and next 5 years is as follows:Years(dollarsinmillions)Remainder of 2023$1,29920242,39820252,19820261,95120271,3922028979(1)(1)12Table of ContentsNote5.DebtSignificant Debt TransactionsDebt or equity financing may be needed to fund additional investments or develo

115、pment activities or to maintain an appropriate capital structure to ensure ourfinancial flexibility.The following tables show the significant transactions involving the senior unsecured debt securities of Verizon and its subsidiaries that occurred during thethree and six months ended June30,2023.Rep

116、ayments and Repurchases(dollars in millions)Principal Repaid/RepurchasedAmount Paid Three Months Ended March 30,2023Verizon 3.500%notes and floating rate notes due 2023 A$1,050$850Open market repurchases of various Verizon notes$260190Three Months Ended March 30,2023 total1,040Three Months Ended Jun

117、e 30,2023Verizon 0.375%bonds due 2023 CHF600$633Open market repurchases of various Verizon notes$247177Three Months Ended June 30,2023 total810Six Months Ended June 30,2023 total$1,850 Represents amount paid to repay or repurchase,including any accrued interest.In addition,for securities denominated

118、 in a currency other than the U.S.dollar,amount paid is shown on a U.S.dollar equivalent basis.U.S.dollar amount paid represents the amount payable at maturity per the derivatives entered into in connection with the transaction.See Note7 foradditional information on cross currency swap transactions

119、related to the repayment.Issuances(dollars in millions)Principal Amount IssuedNet Proceeds Three Months Ended June 30,2023Verizon 5.050%notes due 2033$1,000$994Three and Six Months Ended June 30,2023 total$1,000$994 Net proceeds were net of underwriting discounts and other issuance costs.An amount e

120、qual to the net proceeds from these notes is expected to be used to fund,in whole or in part,certain renewable energy projects,includingnew and existing investments made by us during the period from January 1,2023 through the maturity date of the notes.Short-Term Borrowing and Commercial Paper Progr

121、amIn March 2023,we entered into and fully drew from a$500million short-term revolving credit facility.As of June30,2023,the$500million borrowed underthe facility remains outstanding.During the six months ended June30,2023,we issued$8.4billion in commercial paper and we repaid$8.5billion of commercia

122、l paper.As of June30,2023,we had no commercial paper outstanding.These transactions are reflected within Cash flows from financing activities in our condensed consolidatedstatements of cash flows.Asset-Backed DebtAs of June30,2023,the carrying value of our asset-backed debt was$21.3 billion.Our asse

123、t-backed debt includes Asset-Backed Notes(ABS Notes)issuedto third-party investors(Investors)and loans(ABS Financing Facilities)received from banks and their conduit facilities(collectively,the Banks).Ourconsolidated asset-backed debt bankruptcy remote legal entities(each,an ABS Entity,or collective

124、ly,the ABS Entities)issue the debt or are otherwise partyto the transaction documentation in connection with our asset-backed debt transactions.Under the terms of our asset-backed debt,Cellco Partnership(Cellco),a wholly-owned subsidiary of the Company,and certain other Company affiliates(collective

125、ly,the Originators)transfer device payment planagreement receivables and certain other receivables(collectively referred to as certain receivables)to one of the ABS Entities,which in turn transfers suchreceivables to another ABS Entity that issues the debt.Verizon entities retain the equity interest

126、s and residual interests,as applicable,in the ABS Entities,which represent the rights to all funds not needed to make required payments on the asset-backed debt and other related payments and expenses.Our asset-backed debt is secured by the transferred receivables and future collections on such rece

127、ivables.These receivables transferred to the ABSEntities and related assets,consisting primarily of restricted cash,will only be available for payment of asset-backed debt and expenses related thereto,payments to the Originators in respect of additional transfers of certain(1)(2)(2)(1)(2)(1)(2)(1)(2

128、)13Table of Contentsreceivables,and other obligations arising from our asset-backed debt transactions,and will not be available to pay other obligations or claims of Verizonscreditors until the associated asset-backed debt and other obligations are satisfied.The Investors or Banks,as applicable,whic

129、h hold our asset-backed debthave legal recourse to the assets securing the debt,but do not have any recourse to Verizon with respect to the payment of principal and interest on thedebt.Under a parent support agreement,the Company has agreed to guarantee certain of the payment obligations of Cellco a

130、nd the Originators to the ABSEntities.Cash collections on the receivables collateralizing our asset-backed debt securities are required at certain specified times to be placed into segregatedaccounts.Deposits to the segregated accounts are considered restricted cash and are included in Prepaid expen

131、ses and other and Other assets in ourcondensed consolidated balance sheets.Proceeds from our asset-backed debt transactions are reflected in Cash flows from financing activities in our condensed consolidated statements of cashflows.The asset-backed debt issued is included in Debt maturing within one

132、 year and Long-term debt in our condensed consolidated balance sheets.ABS NotesDuring the six months ended June30,2023,we completed the following ABS Notes transactions:(dollars in millions)Interest Rates%Expected Weighted-average Life toMaturity(in years)Principal AmountIssuedJanuary 2023Series 202

133、3-1A Senior class notes4.4902.98$891B Junior class notes4.7402.98C Junior class notes4.9802.9841January 2023 total932April 2023Series 2023-2A Senior class notes4.8901.99891B Junior class notes5.1301.99C Junior class notes5.3801.9941Series 2023-3A Senior class notes4.7304.99268B Junior class notes4.9

134、704.99C Junior class notes5.2204.9912April 2023 total1,212June 2023Series 2023-4A-1a Senior fixed rate class notes5.1602.97538A-1b Senior floating rate class notesCompounded SOFR+0.8502.97175B Junior class notes5.4002.97C Junior class notes5.6502.9733June 2023 total746Total$2,890Under the terms of e

135、ach series of ABS Notes outstanding as of June30,2023,there is a revolving period of up to 18 months,two years,three years,or fiveyears,as applicable,during which we may transfer additional receivables to the ABS Entity.During the six months ended June30,2023,we made aggregateprincipal repayments of

136、$1.7billion on ABS Notes that have entered the amortization period,including payments in connection with any note redemptions.In July 2023,in connection with an anticipated redemption of ABS Notes,we made a principal payment,in whole,for$900million.14Table of ContentsABS Financing FacilitiesUnder th

137、e two loan agreements outstanding in connection with the ABS Financing Facility originally entered into in December 2021 and previously renewedin 2022(2021 ABS Financing Facility),we borrowed an additional$325million in March 2023 and prepaid an aggregate of$700million in April 2023.Theaggregate out

138、standing balance under the 2021 ABS Financing Facility was$7.6billion as of June30,2023.In March 2023,we borrowed an additional$500million under the loan agreement outstanding in connection with the ABS Financing Facility that we originallyentered into in 2022(2022 ABS Financing Facility).The aggreg

139、ate outstanding balance under the 2022 ABS Financing Facility was$2.5billion as ofJune30,2023.Variable Interest Entities(VIEs)The ABS Entities meet the definition of a VIE for which we have determined that we are the primary beneficiary as we have both the power to direct theactivities of the entity

140、 that most significantly impact the entitys performance and the obligation to absorb losses or the right to receive benefits of the entity.Therefore,the assets,liabilities and activities of the ABS Entities are consolidated in our financial results and are included in amounts presented on the faceof

141、 our condensed consolidated balance sheets.The assets and liabilities related to our asset-backed debt arrangements included in our condensed consolidated balance sheets were as follows:At June 30,At December 31,(dollars in millions)20232022AssetsAccounts receivable,net$14,143$13,906Prepaid expenses

142、 and other1,4691,409Other assets11,4689,894LiabilitiesAccounts payable and accrued liabilities2422Debt maturing within one year9,5936,809Long-term debt11,74913,199See Note6 for additional information on certain receivables used to secure asset-backed debt.Long-Term Credit FacilitiesAt June30,2023(do

143、llars in millions)MaturitiesFacility CapacityUnused CapacityPrincipal AmountOutstandingVerizon revolving credit facility 2026$9,500$9,455$Various export credit facilities 2024-203111,0004866,720Total$20,500$9,941$6,720 The revolving credit facility does not require us to comply with financial covena

144、nts or maintain specified credit ratings,and it permits us to borrow even ifour business has incurred a material adverse change.The revolving credit facility provides for the issuance of letters of credit.As of June30,2023,therehave been no drawings against the$9.5billion revolving credit facility s

145、ince its inception.During the six months ended June30,2023 and 2022,we drew down$515million and$2.0billion,respectively,from these facilities.Borrowings undercertain of these facilities are amortized semi-annually in equal installments up to the applicable maturity dates.Maturities reflect maturity

146、dates of principalamounts outstanding.Any amounts borrowed under these facilities and subsequently repaid cannot be reborrowed.Non-Cash TransactionsDuring the six months ended June30,2023 and 2022,we financed,primarily through alternative financing arrangements,the purchase of approximately$719milli

147、on and$321million,respectively,of long-lived assets consisting primarily of network equipment.As of June30,2023 and December 31,2022,$2.2billion and$1.7billion,respectively,relating to these financing arrangements,including those entered into in prior years and liabilities assumed throughacquisition

148、s,remained outstanding.These purchases are non-cash financing activities and therefore are not reflected within Capital expenditures in ourcondensed consolidated statements of cash flows.(1)(2)(1)(2)15Table of ContentsNet Debt Extinguishment Gains(Losses)During the three and six months ended June30,

149、2023,we recorded debt extinguishment gains of$69million and$139million,respectively.During the threemonths ended June30,2022,we recorded debt extinguishment gains of$50million.During the six months ended June30,2022,we recorded net debtextinguishment losses of$1.2billion.The gains and losses are rec

150、orded in Other income(expense),net in our condensed consolidated statements ofincome.The total gains and losses are reflected within Other,net cash flow from operating activities,and the portion of the gains and losses representingcash payments are reflected within Other,net cash flow from financing

151、 activities in our condensed consolidated statements of cash flows.GuaranteesWe guarantee the debentures of our operating telephone company subsidiaries.As of June30,2023,$614million aggregate principal amount of theseobligations remained outstanding.Each guarantee will remain in place for the life

152、of the obligation unless terminated pursuant to its terms,including theoperating telephone company no longer being a wholly-owned subsidiary of the Company.Debt CovenantsWe and our consolidated subsidiaries are in compliance with all of our restrictive covenants in our debt agreements.Note6.Device P

153、ayment Plan Agreement and Wireless Service ReceivablesThe following table presents information about accounts receivable,net of allowances,recorded in our condensed consolidated balance sheet:At June 30,2023(dollars in millions)Device paymentplan agreementWirelessserviceOtherreceivablesTotalAccounts

154、 receivable$12,810$5,202$6,096$24,108Less Allowance for credit losses502188232922Accounts receivable,net of allowance$12,308$5,014$5,864$23,186Other receivables primarily include wireline and other receivables,of which the allowances are individually insignificant.Included in Other assets and Accoun

155、ts receivable at June30,2023 and December31,2022,are net device payment plan agreement receivables and netwireless service receivables of$25.4 billion and$23.6billion,respectively,which have been transferred to ABS Entities and continue to be reported in ourcondensed consolidated balance sheets.See

156、Note5 for additional information.We believe the carrying value of these receivables approximate their fairvalue using a Level 3 expected cash flow model.Under the Verizon device payment program,our eligible wireless customers purchase wireless devices under a device payment plan agreement.Customerst

157、hat activate service on devices purchased under the device payment program pay lower service fees as compared to those under our fixed-term serviceplans,and their device payment plan charge is included on their wireless monthly bill.We no longer offer Consumer customers new fixed-term,subsidizedserv

158、ice plans for devices;however,we continue to offer subsidized plans to our Business customers.We also continue to service existing plans forcustomers who have not yet purchased and activated devices under the Verizon device payment program.Wireless Device Payment Plan Agreement ReceivablesThe follow

159、ing table displays device payment plan agreement receivables,net,recognized in our condensed consolidated balance sheets:At June 30,At December 31,(dollars in millions)20232022Device payment plan agreement receivables,gross$26,521$26,188Unamortized imputed interest(579)(479)Device payment plan agree

160、ment receivables,at amortized cost25,94225,709Allowance(1,007)(881)Device payment plan agreement receivables,net$24,935$24,828Classified in our condensed consolidated balance sheets:Accounts receivable,net$12,308$12,929Other assets12,62711,899Device payment plan agreement receivables,net$24,935$24,8

161、28Includes allowance for both short-term and long-term device payment plan agreement receivables.(1)(1)(1)(1)16Table of ContentsFor indirect channel wireless contracts with customers,we impute risk adjusted interest on the device payment plan agreement receivables.We record theimputed interest as a

162、reduction to the related accounts receivable.The associated interest income,which is included within Service revenues and other inour condensed consolidated statements of income,is recognized over the financed device payment term.PromotionsIn connection with certain device payment plan agreements,we

163、 may offer a promotion to allow our customers to upgrade to a new device after paying downa certain specified portion of the required device payment plan agreement amount as well as trading in their device in good working order.When a customerenters into a device payment plan agreement with the righ

164、t to upgrade to a new device,we account for this trade-in right as a guarantee obligation.Werecognize a liability measured at fair value for the customers right to trade in the device which is determined by considering several factors,including theweighted-average selling prices obtained in recent r

165、esales of similar devices eligible for trade-in.At June30,2023 and December31,2022,the amount ofthe guarantee liability was insignificant and$54million,respectively.We may offer certain promotions that allow a customer to trade in their owned device in connection with the purchase of a new device.Un

166、der these types ofpromotions,the customer receives a credit for the value of the trade-in device.At June30,2023 and December31,2022,the amount of trade-in liability was$449million and$562million,respectively.In addition,we may provide the customer with additional future billing credits that will be

167、applied against the customers monthly bill as long as service ismaintained.These future billing credits are accounted for as consideration payable to a customer and are included in the determination of total transactionprice,resulting in a contract liability.Device payment plan agreement receivables

168、,net,does not reflect the trade-in liability,additional future credits or the guarantee liability.Origination of Device Payment Plan AgreementsWhen originating device payment plan agreements,we use internal and external data sources to create a credit risk score to measure the credit quality of acus

169、tomer and to determine eligibility for the device payment program.Verizons experience has been that the payment attributes of longer tenuredcustomers are highly predictive for estimating their reliability to make future payments.Customers with longer tenures tend to exhibit similar riskcharacteristi

170、cs to other customers with longer tenures,and receivables due from customers with longer tenures tend to perform better than receivables fromcustomers that have not previously been Verizon customers.As a result of this experience,we make initial lending decisions based upon whether thecustomers are

171、established customers or short-tenured customers.If a Consumer customer has been a customer for 45 days or more,or if a Businesscustomer has been a customer for 12 months or more,the customer is considered an established customer.For established customers,the credit decisionand ongoing credit monito

172、ring processes rely on a combination of internal and external data sources.If a Consumer customer has been a customer lessthan 45 days,or a Business customer has been a customer for less than 12 months,the customer is considered a short-tenured customer.For short-tenured customers,the credit decisio

173、n and credit monitoring processes rely more heavily on external data sources.Available external credit data from credit reporting agencies along with internal data are used to create custom credit risk scores for Consumer customers.The custom credit risk score is generated automatically from the app

174、licants credit data using proprietary custom credit models.The credit risk scoremeasures the likelihood that the potential customer will become severely delinquent and be disconnected for non-payment.For a small portion of short-tenured customer applications,a traditional credit report is not availa

175、ble from one of the national credit reporting agencies because the potential customerdoes not have sufficient credit history.In those instances,alternative credit data is used for the risk assessment.For Business customers,we also verify theexistence of the business with external data sources.Based

176、on the custom credit risk score,we assign each customer a credit class,each of which has specified offers of credit.This includes an account levelspending limit and a maximum amount of credit allowed per device for Consumer customers or a required down payment percentage for Businesscustomers.Credit

177、 Quality InformationSubsequent to origination,we assess indicators for the quality of our wireless device payment plan agreement portfolio using two models,one for newcustomers and one for existing customers.The model for new customers pools all Consumer and Business wireless customers based on less

178、 than 210 daysas new customers.The model for existing customers pools all Consumer and Business wireless customers based on 210 days or more as existingcustomers.17Table of ContentsThe following table presents device payment plan agreement receivables,at amortized cost,and gross write-offs recorded,

179、as of and for the six monthsended June30,2023,by credit quality indicator and year of origination:Year of Origination(dollars in millions)202320222021 and priorTotalDevice payment plan agreement receivables,at amortized costNew customers$1,573$1,964$360$3,897Existing customers7,08712,6562,30222,045T

180、otal$8,660$14,620$2,662$25,942Gross write-offsNew customers$61$269$42$372Existing customers311669188Total$64$385$111$560 Includes accounts that have been suspended at a point in time.The data presented in the table above was last updated on June30,2023.We assess indicators for the quality of our wir

181、eless service receivables portfolio as one overall pool.The following table presents wireless servicereceivables,at amortized cost,and gross write-offs recorded,as of and for the six months ended June30,2023,by year of origination:Year of Origination(dollars in millions)20232022 and priorTotalWirele

182、ss service receivables,at amortized cost$5,078$124$5,202Gross write-offs74150224The data presented in the table above was last updated on June30,2023.Allowance for Credit LossesThe credit quality indicators are used in determining the estimated amount and the timing of expected credit losses for the

183、 device payment plan agreementand wireless service receivables portfolios.For device payment plan agreement receivables,we record bad debt expense based on a default and loss calculation using our proprietary loss model.Theexpected loss rate is determined based on customer credit scores and other qu

184、alitative factors as noted above.The loss rate is assigned individually on acustomer by customer basis and the custom credit scores are then aggregated by vintage and used in our proprietary loss model to calculate the weighted-average loss rate used for determining the allowance balance.We monitor

185、the collectability of our wireless service receivables as one overall pool.Wireline service receivables are disaggregated and pooled by thefollowing types of customers and related contracts:consumer,small and medium business,enterprise,public sector and wholesale.For wireless servicereceivables and

186、wireline consumer and small and medium business receivables,the allowance is calculated based on a 12 month rolling average write-offbalance multiplied by the average life-cycle of an account from billing to write-off.The risk of loss is assessed over the contractual life of the receivables andis ad

187、justed based on the historical loss amounts for current and future conditions based on managements qualitative considerations.For enterprise,publicsector and wholesale wireline receivables,the allowance for credit losses is based on historical write-off experience and individual customer credit risk

188、,ifapplicable.Activity in the allowance for credit losses by portfolio segment of receivables was as follows:(dollars in millions)Device PaymentPlan AgreementReceivablesWireless Service PlanReceivablesBalance at January 1,2023$881$143Current period provision for expected credit losses669250Write-off

189、s charged against the allowance(560)(224)Recoveries collected1719Balance at June 30,2023$1,007$188 Includes allowance for both short-term and long-term device payment plan agreement receivables.We monitor delinquency and write-off experience based on the quality of our device payment plan agreement

190、and wireless service receivables portfolios.The extent of our collection efforts with respect to a particular customer are based on the results of our proprietary custom internal scoring models thatanalyze the customers past performance to predict the likelihood of the customer falling further delin

191、quent.These custom scoring models assess a numberof variables,including origination(1)(1)(1)(1)18Table of Contentscharacteristics,customer account history and payment patterns.Since our customers behaviors may be impacted by general economic conditions,weanalyzed whether changes in macroeconomic con

192、ditions impact our credit loss experience and have concluded that our credit loss estimates are generallynot materially impacted by reasonable and supportable forecasts of future economic conditions.Based on the score derived from these models,accountsare grouped by risk category to determine the co

193、llection strategy to be applied to such accounts.For device payment plan agreement receivables andwireless service receivables,we consider an account to be delinquent and in default status if there are unpaid charges remaining on the account on the dayafter the bills due date.The risk class determin

194、es the speed and severity of the collections effort including initiatives taken to facilitate customer payment.The balance and aging of the device payment plan agreement receivables,at amortized cost,were as follows:At June 30,(dollars in millions)2023Unbilled$24,712Billed:Current1,007Past due223Dev

195、ice payment plan agreement receivables,at amortized cost$25,942Note7.Fair Value Measurements and Financial InstrumentsRecurring Fair Value MeasurementsThe following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of June30,2023:(dollars in million

196、s)Level1Level2Level3TotalAssets:Prepaid expenses and other:Fixed income securities$41$41Cross currency swaps44Foreign exchange forwards11Interest rate caps7676Other assets:Fixed income securities269269Cross currency swaps455455Interest rate caps2121Total$867$867Liabilities:Other current liabilities:

197、Interest rate swaps$885$885Cross currency swaps354354Foreign exchange forwards55Interest rate caps7676Contingent consideration202202Other liabilities:Interest rate swaps3,6663,666Cross currency swaps2,6072,607Interest rate caps2121Total$7,614$202$7,816Quoted prices in active markets for identical as

198、sets or liabilities.Observable inputs other than quoted prices in active markets for identical assets and liabilities.Unobservable pricing inputs in the market.(1)(2)(3)(1)(2)(3)19Table of ContentsThe following table presents the balances of assets and liabilities measured at fair value on a recurri

199、ng basis as of December31,2022:(dollars in millions)Level1Level2Level3TotalAssets:Prepaid expenses and other:Fixed income securities$37$37Cross currency swaps4242Foreign exchange forwards66Interest rate caps6363Other assets:Fixed income securities349349Cross currency swaps263263Interest rate caps303

200、0Total$790$790Liabilities:Other current liabilities:Interest rate swaps$731$731Cross currency swaps346346Interest rate caps6363Foreign exchange forwards11Contingent consideration274274Other liabilities:Interest rate swaps3,9023,902Cross currency swaps3,2953,295Interest rate caps3030Contingent consid

201、eration4343Total$8,368$317$8,685Quoted prices in active markets for identical assets or liabilities.Observable inputs other than quoted prices in active markets for identical assets and liabilities.Unobservable pricing inputs in the market.Certain of our equity investments do not have readily determ

202、inable fair values and are excluded from the tables above.Such investments are measured atcost,less any impairment,plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of thesame issuer and are included in Investments in unconso

203、lidated businesses in our condensed consolidated balance sheets.As of June30,2023 andDecember31,2022,the carrying amount of our investments without readily determinable fair values was$796million and$804million,respectively.Duringboth the three and six months ended June30,2023,there were insignifica

204、nt adjustments due to observable price changes.During the three and six monthsended June30,2023,there were no and an insignificant amount of impairment charges,respectively.As of June30,2023,cumulative adjustments due toobservable price changes and impairment charges were approximately$165million an

205、d$88million,respectively.Verizon has a liability for contingent consideration related to its acquisition of TracFone,completed in November 2021.The fair value is calculated using aprobability-weighted discounted cash flow model and represents a Level 3 measurement.Level 3 instruments include valuati

206、on based on unobservableinputs reflecting our own assumptions,consistent with reasonably available assumptions made by other market participants.Subsequent to the AcquisitionDate,at each reporting date,the contingent consideration liability is remeasured to fair value.During the six months ended Jun

207、e30,2023,we made apayment of$102million related to the contingent consideration.See Note 3 for additional information.Fixed income securities consist primarily of investments in municipal bonds.The valuation of the fixed income securities is based on the quoted prices forsimilar assets in active mar

208、kets or identical assets in inactive markets or models that apply inputs from observable market data.The valuation determinesthat these securities are classified as Level 2.Derivative contracts are valued using models based on readily observable market parameters for all substantial terms of our der

209、ivative contracts and thusare classified within Level2.We use mid-market pricing for fair value measurements of our derivative instruments.Our derivative instruments are recordedon a gross basis.We recognize transfers between levels of the fair value hierarchy as of the end of the reporting period.(

210、1)(2)(3)(1)(2)(3)20Table of ContentsFair Value of Short-term and Long-term DebtThe fair value of our debt is determined using various methods,including quoted prices for identical debt instruments,which is a Level1 measurement,aswell as quoted prices for similar debt instruments with comparable term

211、s and maturities,which is a Level2 measurement.The fair value of our short-term and long-term debt,excluding finance leases,was as follows:Fair Value(dollars in millions)CarryingAmountLevel 1Level 2Level 3TotalAt December 31,2022$148,906$84,385$54,656$139,041At June 30,2023150,75686,84355,667142,510

212、Derivative InstrumentsWe enter into derivative transactions primarily to manage our exposure to fluctuations in foreign currency exchange rates and interest rates.We employ riskmanagement strategies,which may include the use of a variety of derivatives including interest rate swaps,cross currency sw

213、aps,forward starting interestrate swaps,treasury rate locks,interest rate caps,swaptions and foreign exchange forwards.We do not hold derivatives for trading purposes.The following table sets forth the notional amounts of our outstanding derivative instruments:At June 30,At December 31,(dollars in m

214、illions)20232022Interest rate swaps$26,071$26,071Cross currency swaps33,52634,976Foreign exchange forwards980920The following tables summarize the activities of our designated derivatives:Three Months EndedSix Months EndedJune 30,June 30,(dollars in millions)2023202220232022Interest Rate Swaps:Notio

215、nal value entered into$500$7,155Notional value settled863Pre-tax gain recognized in Interest expense21Cross Currency Swaps:Notional value entered intoNotional value settled6121,450Pre-tax loss recognized in Other comprehensive income(loss)N/AN/AN/A(430)Pre-tax gain(loss)on cross currency swaps recog

216、nized in Interest expense370(1,808)725(1,808)Pre-tax gain(loss)on hedged debt recognized in Interest expense(370)1,808(725)1,808Excluded components recognized in Other comprehensive income(loss)420(340)42(340)Initial value of the excluded component amortized into Interest expense27275427Forward Star

217、ting Interest Rate Swaps:Notional value entered intoNotional value settled6001,000Pre-tax gain recognized in Other comprehensive income(loss)68196Treasury Rate Locks:Notional value entered into500500Notional value settled500500Pre-tax gain recognized in Other comprehensive income(loss)55N/A-not appl

218、icable Represents amounts recorded under the cash flow hedge model.These instruments were re-designated as fair value hedges on March 31,2022.(1)(1)21Table of ContentsSix Months EndedJune 30,(dollars in millions)20232022Other,net Cash Flows from Operating Activities:Cash received for settlement of i

219、nterest rate swaps$40Cash paid for settlement of forward starting interest rate swaps(107)Cash received for settlement of treasury rate locks5Other,net Cash Flows from Financing Activities:Cash paid for settlement of cross currency swaps,net(67)The following table displays the amounts recorded in Lo

220、ng-term debt in our condensed consolidated balance sheets related to cumulative basis adjustmentsfor fair value hedges.The cumulative amounts exclude cumulative basis adjustments related to foreign exchange risk.At June 30,At December 31,(dollars in millions)20232022Carrying amount of hedged liabili

221、ties$21,790$21,741Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedgedliabilities(4,433)(4,512)Cumulative amount of fair value hedging adjustment remaining for which hedge accounting hasbeen discontinued444488Interest Rate SwapsWe enter into interest rate

222、swaps to achieve a targeted mix of fixed and variable rate debt.We principally receive fixed rates and pay variable rates,resultingin a net increase or decrease to Interest expense.These swaps are designated as fair value hedges and hedge against interest rate risk exposure ofdesignated debt issuanc

223、es.We record the interest rate swaps at fair value in our condensed consolidated balance sheets as assets and liabilities.Changesin the fair value of the interest rate swaps are recorded to Interest expense,which are primarily offset by changes in the fair value of the hedged debt due tochanges in i

224、nterest rates.Cross Currency SwapsWe have entered into cross currency swaps previously designated as cash flow hedges through March 31,2022 to exchange our British PoundSterling,Euro,Swiss Franc,Canadian Dollar and Australian Dollar-denominated cash flows into U.S.dollars and to fix our cash payment

225、s in U.S.dollars,as well asto mitigate the impact of foreign currency transaction gains or losses.A portion of the loss recognized in Other comprehensive income(loss)was reclassifiedto Interest expense to offset the related pre-tax foreign currency transaction gain or loss on the underlying hedged i

226、tem.On March 31,2022,we elected to de-designate our cross currency swaps as cash flow hedges and re-designated these swaps as fair value hedges.Forthese hedges,we have elected to exclude the change in fair value of the cross currency swaps related to both time value and cross currency basis spreadfr

227、om the assessment of hedge effectiveness(the excluded components).The initial value of the excluded components of$1.0billion as of March 31,2022will continue to be amortized into Interest expense over the remaining life of the hedging instruments.We estimate that$108million will be amortized intoInt

228、erest expense within the next 12 months.In addition to the previously mentioned cross currency swaps,we have executed additional cross currency swaps to exchange Euro-denominated cash flowsinto U.S.dollars to fix our cash payments in U.S.dollars.These swaps are designated as fair value hedges.We rec

229、ord the cross currency swaps at fairvalue in our condensed consolidated balance sheets as assets and liabilities.Changes in the fair value of the cross currency swaps attributable to changesin the spot rate of the hedged item and changes in the recorded value of the hedged debt due to changes in spo

230、t rates are recorded in the same incomestatement line item.We present exchange gains and losses from the conversion of foreign currency denominated debt as a part of Interest expense.Duringboth the three and six months ended June30,2023 and June30,2022,these amounts completely offset each other and

231、no net gain or loss was recorded.Changes in the fair value of cross currency swaps attributable to time value and cross currency basis spread are initially recorded to Other comprehensiveincome(loss).Unrealized gains or losses on excluded components are recorded in Other comprehensive income(loss)an

232、d are recognized into Interestexpense on a systematic and rational basis through the swap accrual over the life of the hedging instrument.The amount remaining in Accumulated othercomprehensive loss related to cash flow hedges on the date of transition will be reclassified to earnings when the hedged

233、 item is recognized in earnings orwhen it becomes probable that the forecasted transactions will not occur.During both the three and six months ended June30,2023 and June30,2022,theamortization of the initial value of the excluded component completely offset the amortization related to the amount re

234、maining in Other comprehensiveincome(loss)related to cash flow hedges.See Note9 for additional information.22Table of ContentsForward Starting Interest Rate SwapsFrom time to time we enter into forward starting interest rate swaps designated as cash flow hedges in order to manage our exposure to int

235、erest ratechanges on future forecasted transactions.We hedge our exposure to the variability in future cash flows based on the expected maturities of the relatedforecasted debt issuance.We recognize gains and losses resulting from interest rate movements in Other comprehensive income(loss).Treasury

236、Rate LocksWe have entered into treasury rate locks designated as cash flow hedges to mitigate our interest rate risk on future transactions.We recognize gains andlosses resulting from interest rate movements in Other comprehensive income(loss).Net Investment HedgesWe have designated certain foreign

237、currency debt instruments as net investment hedges to mitigate foreign exchange exposure related to non-U.S.dollarnet investments in certain foreign subsidiaries against changes in foreign exchange rates.The notional amount of Euro-denominated debt designated as anet investment hedge was 750 million

238、 as of both June30,2023 and December31,2022.Undesignated DerivativesWe also have the following derivative contracts which we use as economic hedges but for which we have elected not to apply hedge accounting.The following table summarizes the activity of our derivatives not designated in hedging rel

239、ationships:Three Months EndedSix Months EndedJune 30,June 30,(dollars in millions)2023202220232022Foreign Exchange Forwards:Notional value entered into$2,770$2,856$5,425$5,502Notional value settled2,7702,8305,3655,433Pre-tax gain(loss)recognized in Other income(expense),net12(66)22(94)Swaptions:Noti

240、onal value sold1,000Notional value settled1,000Pre-tax loss recognized in Interest expense(33)Foreign Exchange ForwardsWe enter into British Pound Sterling and Euro foreign exchange forwards to mitigate our foreign exchange rate risk related to non-functional currencydenominated monetary assets and

241、liabilities of international subsidiaries.SwaptionsWe enter into swaptions to achieve a targeted mix of fixed and variable rate debt.Concentrations of Credit RiskFinancial instruments that subject us to concentrations of credit risk consist primarily of temporary cash investments,short-term and long

242、-term investments,trade receivables,including device payment plan agreement receivables,certain notes receivable,including lease receivables,and derivative contracts.Counterparties to our derivative contracts are major financial institutions with whom we have negotiated derivatives agreements(ISDA m

243、aster agreements)and credit support annex(CSA)agreements which provide rules for collateral exchange.The CSA agreements contain rating based thresholds such that weor our counterparties may be required to hold or post collateral based upon changes in outstanding positions as compared to established

244、thresholds andchanges in credit ratings.We do not offset fair value amounts recognized for derivative instruments and fair value amounts recognized for the right to reclaimcash collateral or the obligation to return cash collateral arising from derivative instruments recognized at fair value.At June

245、30,2023,we did not hold anycollateral.At June30,2023,we posted$1.5 billion of collateral related to derivative contracts under collateral exchange agreements,which was recorded asPrepaid expenses and other in our condensed consolidated balance sheet.At December31,2022,we did not hold any collateral.

246、At December 31,2022,weposted$2.3 billion of collateral related to derivative contracts under collateral exchange arrangements,which was recorded as Prepaid expenses and otherin our condensed consolidated balance sheet.While we may be exposed to credit losses due to the nonperformance of our counterp

247、arties,we consider therisk remote and do not expect that any such nonperformance would result in a significant effect on our results of operations or financial condition due to ourdiversified pool of counterparties.23Table of ContentsNote8.Employee BenefitsWe maintain non-contributory defined benefi

248、t pension plans for certain employees.In addition,we maintain postretirement health care and life insuranceplans for certain retirees and their dependents,which are both contributory and non-contributory,and include a limit on our share of the cost for certaincurrent and future retirees.In accordanc

249、e with our accounting policy for pension and other postretirement benefits,operating expenses include service costsassociated with pension and other postretirement benefits while other credits and/or charges based on actuarial assumptions,including projected discountrates,an estimated return on plan

250、 assets,and impact from health care trend rates are reported in Other income(expense),net.These estimates areupdated in the fourth quarter or upon a remeasurement event,to reflect actual return on plan assets and updated actuarial assumptions.The adjustment isrecognized in the income statement durin

251、g the fourth quarter or upon a remeasurement event pursuant to our accounting policy for the recognition ofactuarial gains and losses.Net Periodic Benefit Cost(Income)The following table summarizes the components of net periodic benefit cost(income)related to our pension and postretirement health ca

252、re and lifeinsurance plans:(dollars in millions)PensionHealthCareandLifeThree Months Ended June 30,2023202220232022Service cost-Cost of services$45$58$12$20Service cost-Selling,general and administrative expense7824Service cost$52$66$14$24Amortization of prior service cost(credit)$28$15$(104)$(110)E

253、xpected return on plan assets(253)(294)(8)(7)Interest cost18811413683Remeasurement loss,net198Other components$(37)$33$24$(34)Total$15$99$38$(10)(dollars in millions)PensionHealthCareandLifeSix Months Ended June 30,2023202220232022Service cost-Cost of services$91$116$23$40Service cost-Selling,genera

254、l and administrative expense141647Service cost$105$132$27$47Amortization of prior service cost(credit)$56$30$(209)$(313)Expected return on plan assets(506)(591)(15)(14)Interest cost376224272166Remeasurement loss,net198Other components$(74)$(139)$48$(161)Total$31$(7)$75$(114)The service cost componen

255、t of net periodic benefit cost(income)is recorded in Cost of services and Selling,general and administrative expense in thecondensed consolidated statements of income while the other components,including mark-to-market adjustments,if any,are recorded in Other income(expense),net.Severance PaymentsDu

256、ring the three and six months ended June30,2023,we paid severance benefits of$86 million and$226 million,respectively.During the three and sixmonths ended June30,2023,we recorded pre-tax severance charges of$241million and$249 million,respectively,related to involuntary separations underour existing

257、 plans.At June30,2023,we had a remaining severance liability of$623million,a portion of which includes future contractual payments toseparated employees.Employer ContributionsDuring both the three and six months ended June30,2023,we made a discretionary contribution of$200million to one of our quali

258、fied pension plans andmade insignificant contributions to our nonqualified pension plans.No mandatory qualified pension plans contributions are expected or required throughDecember31,2023.There have been no significant changes with respect to the nonqualified pension and other postretirement benefit

259、 plans contributions in2023.24Table of ContentsRemeasurement loss,netDuring both the three and six months ended June 30,2022,we recorded a net pre-tax remeasurement loss of$198million in our pension plans triggered bysettlements,primarily driven by a$654million charge resulting from the difference b

260、etween our estimated and actual return on assets,partially offset by acredit of$456million mainly due to changes in our discount rate and changes in our lump sum interest rate assumptions used to determine the current yearliabilities of our pension plans.Note9.Equity and Accumulated Other Comprehens

261、ive LossEquityChanges in the components of Total equity were as follows:Three Months Ended June 30,20232022(dollars in millions,except per share amounts,and shares in thousands)SharesAmountSharesAmountCommon StockBalance at beginning of period4,291,434$4294,291,434$429Balance at end of period4,291,4

262、344294,291,434429Additional Paid In CapitalBalance at beginning of period13,52313,874Other(2)Balance at end of period13,52313,872Retained EarningsBalance at beginning of period84,54373,891Net income attributable to Verizon4,6485,199Dividends declared($0.6525,$0.6400 per share)(2,743)(2,687)Other(2)B

263、alance at end of period86,44876,401Accumulated Other Comprehensive LossBalance at beginning of period attributable to Verizon(2,177)(906)Foreign currency translation adjustments(6)(136)Unrealized gain on cash flow hedges2572Unrealized gain(loss)on fair value hedges293(272)Unrealized loss on marketab

264、le securities(2)(6)Defined benefit pension and postretirement plans(54)(72)Other comprehensive income(loss)256(414)Balance at end of period attributable to Verizon(1,921)(1,320)Treasury StockBalance at beginning of period(87,442)(3,832)(91,790)(4,023)Employee plans482713Balance at end of period(87,3

265、94)(3,830)(91,719)(4,020)Deferred Compensation-ESOPs and OtherBalance at beginning of period397497Restricted stock equity grant150160Amortization(3)(3)Balance at end of period544654Noncontrolling InterestsBalance at beginning of period1,3361,413Total comprehensive income118116Distributions and other

266、(145)(188)Balance at end of period1,3091,341Total Equity$96,502$87,35725Table of ContentsSix Months Ended June 30,20232022(dollars in millions,except per share amounts,and shares in thousands)SharesAmountSharesAmountCommon StockBalance at beginning of period4,291,434$4294,291,434$429Balance at end o

267、f period4,291,4344294,291,434429Additional Paid In CapitalBalance at beginning of period13,42013,861Other10311Balance at end of period13,52313,872Retained EarningsBalance at beginning of period82,38071,993Net income attributable to Verizon9,5579,779Dividends declared($1.3050,$1.2800 per share)(5,489

268、)(5,379)Other8Balance at end of period86,44876,401Accumulated Other Comprehensive LossBalance at beginning of period attributable to Verizon(1,865)(927)Foreign currency translation adjustments20(165)Unrealized gain on cash flow hedges46279Unrealized loss on fair value hedges(9)(272)Unrealized gain(l

269、oss)on marketable securities2(24)Defined benefit pension and postretirement plans(115)(211)Other comprehensive loss(56)(393)Balance at end of period attributable to Verizon(1,921)(1,320)Treasury StockBalance at beginning of period(91,572)(4,013)(93,635)(4,104)Employee plans4,1751831,91384Shareholder

270、 plans33Balance at end of period(87,394)(3,830)(91,719)(4,020)Deferred Compensation-ESOPs and OtherBalance at beginning of period793538Restricted stock equity grant136269Amortization(385)(153)Balance at end of period544654Noncontrolling InterestsBalance at beginning of period1,3191,410Total comprehe

271、nsive income227247Distributions and other(237)(316)Balance at end of period1,3091,341Total Equity$96,502$87,357Common StockVerizon did not repurchase any shares of the Companys common stock through its previously authorized share buyback program during the six monthsended June30,2023.At June30,2023,

272、the maximum number of shares that could be purchased by or on behalf of Verizon under our share buybackprogram was 100 million.Common stock has been used from time to time to satisfy some of the funding requirements of employee and shareowner plans,including 4.2million sharesof common stock issued f

273、rom Treasury stock during the six months ended June30,2023.26Table of ContentsAccumulated Other Comprehensive LossThe changes in the balances of Accumulated other comprehensive loss by component were as follows:(dollars in millions)ForeigncurrencytranslationadjustmentsUnrealized gain(loss)on cashflo

274、w hedgesUnrealized gain(loss)on fairvalue hedgesUnrealized gain(loss)onmarketablesecuritiesDefined benefitpensionandpostretirementplansTotalBalance at January 1,2023$(698)$(1,150)$(431)$(9)$423$(1,865)Excluded components recognizedin other comprehensive income3131Other comprehensive income204125Amou

275、nts reclassified to net income42(40)1(115)(112)Net other comprehensive income(loss)2046(9)2(115)(56)Balance at June 30,2023$(678)$(1,104)$(440)$(7)$308$(1,921)The amounts presented above in Net other comprehensive income(loss)are net of taxes.The amounts reclassified to net income related to unreali

276、zed gain(loss)on cash flow hedges and unrealized gain(loss)on fair value hedges in the table above are included in Other income(expense),net and Interestexpense in our condensed consolidated statements of income.See Note7 for additional information.The amounts reclassified to net income related toun

277、realized gain(loss)on marketable securities in the table above are included in Other income(expense),net in our condensed consolidated statements ofincome.The amounts reclassified to net income related to defined benefit pension and postretirement plans in the table above are included in Other incom

278、e(expense),net in our condensed consolidated statements of income.See Note8 for additional information.Note10.Segment InformationReportable SegmentsWe have two reportable segments that we operate and manage as strategic business units-Consumer and Business.We measure and evaluate ourreportable segme

279、nts based on segment operating income,consistent with the chief operating decision makers assessment of segment performance.Our segments and their principal activities consist of the following:SegmentDescriptionVerizonConsumer GroupOur Consumer segment provides consumer-focused wireless and wireline

280、 communications services and products.Our wirelessservices are provided across one of the most extensive wireless networks in the U.S.under the Verizon family of brands andthrough wholesale and other arrangements.We also provide fixed wireless access(FWA)broadband through our wirelessnetworks.Our wi

281、reline services are provided in nine states in the Mid-Atlantic and Northeastern U.S.,as well as Washington D.C.,over our 100%fiber-optic network through our Verizon Fios product portfolio and over a traditional copper-based network tocustomers who are not served by Fios.VerizonBusiness GroupOur Bus

282、iness segment provides wireless and wireline communications services and products,including data,video andconferencing services,corporate networking solutions,security and managed network services,local and long distance voiceservices and network access to deliver various IoT services and products.W

283、e also provide FWA broadband through our wirelessnetworks.We provide these products and services to businesses,government customers and wireless and wireline carriersacross the U.S.and select products and services to customers around the world.Our Consumer segments wireless and wireline products and

284、 services are available to our retail customers,as well as resellers that purchase wirelessnetwork access from us on a wholesale basis.Our Business segments wireless and wireline products and services are organized by the primary customer groups targeted by these offerings.During thefirst quarter of

285、 2023,Verizon reorganized the customer groups within its Business segment.Previously,this segment was comprised of four customergroups:Small and Medium Business,Global Enterprise,Public Sector and Other,and Wholesale.Following the reorganization,there are now threecustomer groups:Enterprise and Publ

286、ic Sector,Business Markets and Other,and Wholesale.Enterprise and Public Sector combines the customerspreviously included in Global Enterprise and Public Sector and Other(excluding BlueJeans and Connect customers)as well as the commercial wirelinecustomers previously included in Small and Medium Bus

287、iness.Business Markets and Other combines the customers previously included in Small andMedium Business(excluding commercial wireline customers),the BlueJeans customers previously included in Global Enterprise and Public Sector andOther,and the Connect customers previously included in Public Sector

288、and Other.The Wholesale customer group remained unchanged.Prior periodoperating revenue results within the Business segment27Table of Contentshave been recast for these reorganized customer groups.There was no change to the composition of our reportable segments and total segment results,nor the det

289、ermination of segment profit.Corporate and other primarily includes device insurance programs,investments in unconsolidated businesses and development stage businesses thatsupport our strategic initiatives,as well as unallocated corporate expenses,certain pension and other employee benefit related c

290、osts and interest andfinancing expenses.Corporate and other also includes the historical results of divested businesses and other adjustments and gains and losses that are notallocated in assessing segment performance due to their nature.Although such transactions are excluded from the business segm

291、ent results,they areincluded in reported consolidated earnings.Gains and losses from these transactions that are not individually significant are included in segment results asthese items are included in the chief operating decision makers assessment of segment performance.The following table provid

292、es operating financial information for our two reportable segments:Three Months EndedSix Months EndedJune 30,June 30,(dollars in millions)2023202220232022External Operating RevenuesConsumerService$18,641$18,149$37,097$36,275Wireless equipment4,4305,7089,30811,082Other1,4351,6962,9093,438Total Consum

293、er24,50625,55349,31450,795BusinessEnterprise and Public Sector3,7843,8677,5717,844Business Markets and Other3,1043,1256,2036,197Wholesale5876231,1861,270Total Business7,4757,61514,96015,311Total reportable segments$31,981$33,168$64,274$66,106Intersegment RevenuesConsumer$52$51$101$101Business8111724

294、Total reportable segments$60$62$118$125Total Operating RevenuesConsumer$24,558$25,604$49,415$50,896Business7,4837,62614,97715,335Total reportable segments$32,041$33,230$64,392$66,231Operating IncomeConsumer$7,330$7,150$14,429$14,469Business5336751,0841,348Total reportable segments$7,863$7,825$15,513

295、$15,817Other revenue includes fees that partially recover the direct and indirect costs of complying with regulatory and industry obligations and programs,revenues associated with certain products included in our device protection offerings,leasing and interest when equipment is sold to the customer

296、 by anauthorized agent under a device payment plan agreement.Referred to as Business Markets and SaaS in the first quarter of 2023.Service and other revenues included in our Business segment were approximately$6.6billion and$6.7billion for the three months ended June30,2023and 2022,respectively,and$

297、13.2billion and$13.4billion for the six months ended June30,2023 and 2022,respectively.Wireless equipment revenuesincluded in our Business segment were$847 million and$966million for the three months ended June30,2023 and 2022,respectively,and$1.7 billionand$1.9 billion for the six months ended June

298、30,2023 and 2022,respectively.The following table provides Fios revenue for our two reportable segments:Three Months EndedSix Months EndedJune 30,June 30,(dollars in millions)2023202220232022Consumer$2,886$2,895$5,775$5,806Business308298615593Total Fios revenue$3,194$3,193$6,390$6,399(1)(2)(3)(1)(2)

299、(3)28Table of ContentsThe following table provides Wireless service revenue for our reportable segments and includes intersegment activity:Three Months EndedSix Months EndedJune 30,June 30,(dollars in millions)2023202220232022Consumer$15,762$15,236$31,361$30,453Business3,3513,1826,6416,307Total Wire

300、less service revenue$19,113$18,418$38,002$36,760Reconciliation to Consolidated Financial InformationThe reconciliation of segment operating revenues and operating income to consolidated operating revenues and operating income below includes the effectsof special items that the chief operating decisi

301、on maker does not consider in assessing segment performance,primarily because of their nature.A reconciliation of the reportable segment operating revenues to consolidated operating revenues is as follows:Three Months EndedSix Months EndedJune 30,June 30,(dollars in millions)2023202220232022Total re

302、portable segment operating revenues$32,041$33,230$64,392$66,231Corporate and other6216231,2381,241Eliminations(66)(64)(122)(129)Total consolidated operating revenues$32,596$33,789$65,508$67,343A reconciliation of the total reportable segments operating income to consolidated income before provision

303、for income taxes is as follows:Three Months EndedSix Months EndedJune 30,June 30,(dollars in millions)2023202220232022Total reportable segment operating income$7,863$7,825$15,513$15,817Corporate and other(344)(190)(348)(214)Severance charges(237)(237)Other components of net periodic benefit charges(

304、Note8)(62)(83)(124)(255)Total consolidated operating income7,2207,55214,80415,348Equity in earnings(losses)of unconsolidated businesses(33)41(24)38Other income(expense),net21049324(875)Interest expense(1,285)(785)(2,492)(1,571)Income Before Provision For Income Taxes$6,112$6,857$12,612$12,940No sing

305、le customer accounted for more than 10%of our total operating revenues during the three and six months ended June30,2023 or 2022.The chief operating decision maker does not review disaggregated assets on a segment basis;therefore,such information is not presented.Depreciationand amortization include

306、d in the measure of segment profitability is primarily allocated based on proportional usage,and is included within Total reportablesegment operating income.Note11.Additional Financial InformationWe maintain a voluntary supplier finance program(SFP)with a financial institution which provides certain

307、 suppliers the option,at their sole discretion,toparticipate in the program and sell their receivables due from Verizon to the financial institution on a non-recourse basis.The eligible suppliers negotiate theterms directly with the financial institution and we have no involvement in establishing th

308、ose terms nor are we a party to these agreements.Our payments associated with the invoices from the suppliers participating in the SFP are made to the financial institution according to the original invoiceterms generally at 90 days from the invoice date and for the original invoice amount.No additi

309、onal payments are exchanged between Verizon and thefinancial institution related to the SFP.Verizon does not pledge any assets nor provide any guarantees to the financial institution in connection with the SFP.The SFP can be terminated by Verizon or the financial institution with a 60-day notice per

310、iod.29Table of ContentsConfirmed obligations outstanding related to suppliers participating in the SFP are recorded within Accounts payable and accrued liabilities in our condensedconsolidated balance sheets and the associated payments are reflected in the operating activities section of our condens

311、ed consolidated statements of cashflows.As of June30,2023 and December31,2022,$697million and$1.0billion,respectively,remained as confirmed obligations outstanding related tosuppliers participating in the SFP.Note12.Commitments and ContingenciesIn the ordinary course of business,Verizon is involved

312、in various commercial litigation and regulatory proceedings at the state and federal level.Where it isdetermined,in consultation with counsel based on litigation and settlement risks,that a loss is probable and estimable in a given matter,Verizon establishesan accrual.In none of the currently pendin

313、g matters is the amount of accrual material.An estimate of the reasonably possible loss or range of loss in excessof the amounts already accrued cannot be made at this time due to various factors typical in contested proceedings,including:(1)uncertain damage theoriesand demands;(2)a less than comple

314、te factual record;(3)uncertainty concerning legal theories and their resolution by courts or regulators;and(4)theunpredictable nature of the opposing party and its demands.We continuously monitor these proceedings as they develop and adjust any accrual ordisclosure as needed.We do not expect that th

315、e ultimate resolution of any pending regulatory or legal matter in future periods will have a material effect onour financial condition,but it could have a material effect on our results of operations for a given reporting period.Verizon is currently involved in approximately 25 federal district cou

316、rt actions alleging that Verizon is infringing various patents.Most of these cases arebrought by non-practicing entities and effectively seek only monetary damages;a small number are brought by companies that have sold products and couldseek injunctive relief as well.These cases have progressed to v

317、arious stages and a small number may go to trial in the coming 12 months if they are nototherwise resolved.In connection with the execution of agreements for the sales of businesses and investments,Verizon ordinarily provides representations and warranties tothe purchasers pertaining to a variety of

318、 nonfinancial matters,such as ownership of the securities being sold,as well as indemnity from certain financiallosses.From time to time,counterparties may make claims under these provisions,and Verizon will seek to defend against those claims and resolve them inthe ordinary course of business.As of

319、 June30,2023,Verizon had 25 renewable energy purchase agreements(REPAs)with third parties.Each of the REPAs is based on the expectedoperation of a renewable energy-generating facility and has a fixed price term of 12 to 20 years from the commencement of the facilitys entry intocommercial operation.T

320、he REPAs generally are expected to be financially settled based on the prevailing market price as energy is generated by thefacilities.30Table of ContentsItem2.Managements Discussion and Analysis of Financial Condition and Results of OperationsOverviewVerizon Communications Inc.(the Company)is a hol

321、ding company that,acting through its subsidiaries(together with the Company,collectively,Verizon),isone of the worlds leading providers of communications,technology,information and entertainment products and services to consumers,businesses andgovernment entities.With a presence around the world,we

322、offer data,video and voice services and solutions on our networks and platforms that aredesigned to meet customers demand for mobility,reliable network connectivity,security and control.To compete effectively in todays dynamic marketplace,we are focused on the capabilities of our high-performing net

323、works to drive growth based ondelivering what customers want and need in the digital world.In 2023,we are focused on maintaining the reliability and resilience of our network,retainingand growing our high-quality customer base while balancing profitability in challenging market conditions,and drivin

324、g monetization of our networks,platformsand solutions.We are creating business value by earning the trust of our stakeholders,limiting our environmental impact and supporting our customer basegrowth while creating social benefit through our products and services.Our strategy requires significant cap

325、ital investments primarily to acquire wirelessspectrum,put the spectrum into service,provide additional capacity for growth in our networks,invest in the fiber that supports our businesses,evolve andmaintain our networks and develop and maintain significant advanced information technology systems an

326、d data system capabilities.We believe that our C-Band spectrum,together with our industry leading millimeter wave spectrum holding,fourth-generation(4G)Long-Term Evolution(LTE)network and fiberinfrastructure,will drive innovative products and services and fuel our growth.We are consistently deployin

327、g new network architecture and technologies to secure our leadership in both 4G and fifth-generation(5G)wireless networks.We expect that our next-generation multi-use platform,which we call the Intelligent Edge Network,will simplify operations by eliminating legacy networkelements,speed the deployme

328、nt of 5G wireless technology and create new opportunities in the business market in a cost efficient manner.Our networkquality is the hallmark of our brand and the foundation for the connectivity,platforms and solutions upon which we build our competitive advantage.Highlights of Our Financial Result

329、s for the Three Months Ended June30,2023 and 2022(dollars in millions)31Table of ContentsHighlights of Our Financial Results for the Six Months Ended June30,2023 and 2022(dollars in millions)Business OverviewWe have two reportable segments that we operate and manage as strategic business units-Veriz

330、on Consumer Group(Consumer)and Verizon BusinessGroup(Business).Revenue by Segment for the Three Months Ended June30,2023 and 2022Note:Excludes eliminations.32Table of ContentsRevenue by Segment for the Six Months Ended June30,2023 and 2022Note:Excludes eliminations.Verizon Consumer GroupOur Consumer

331、 segment provides consumer-focused wireless and wireline communications services and products.Our wireless services are providedacross one of the most extensive wireless networks in the United States(U.S.)under the Verizon family of brands and through wholesale and otherarrangements.We also provide

332、fixed wireless access(FWA)broadband through our wireless networks.Our wireline services are provided in nine states inthe Mid-Atlantic and Northeastern U.S.,as well as Washington D.C.,over our 100%fiber-optic network through our Verizon Fios product portfolio and over atraditional copper-based netwo

333、rk to customers who are not served by Fios.Our Consumer segments wireless and wireline products and services areavailable to our retail customers,as well as resellers that purchase wireless network access from us on a wholesale basis.Customers can obtain our wireless services on a postpaid or prepaid basis.Our postpaid service is generally billed one month in advance for a monthlyaccess charge in